E*TRADE vs Charles Schwab: A Brokerage Account Comparison for Long-Term Investors The Motley Fool

Schwab offers some unique client benefits, such as a satisfaction guarantee, local branches for in-person service, and the ability to purchase fractional shares. We’re still waiting to see what impact, if any, is made by Schwab’s ongoing merger with TD Ameritrade, but all signs point to Schwab continuing to be one of the top online stock trading platforms out there. Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. We established a rating scale based on our criteria, collecting thousands of data points that we weighed into our star-scoring system. Both Charles Schwab and TD Ameritrade have good mobile experiences and include many of the web-based features on the apps. Each offers investors two mobile apps, one for the general website and another for the respective trading platforms, Schwab’s StreetSmart Edge and TD Ameritrade’s thinkorswim.

  • A trader buys 10 April 520 calls for $12 per contract on ABCD with a delta of .29 and a gamma of .005.
  • However, E-Trade limits purchases of fractional shares to ETFs purchased through automated investing.
  • Therefore, at the current valuation, I believe that the shares of Charles Schwab are a BUY.
  • Schwab will benefit from the growth of their retirement account and the individual account that will follow, and hopefully, it will be upgraded to an advisory account.

Full Service Investor Satisfaction Study, Schwab ranked highest in overall investor satisfaction with a score of 752. Morgan Stanley, E-Trade’s parent, received a below-average score of 717. Schwab holds a slight edge over E-Trade in terms of the breadth of product offerings. Let’s take a side-by-side look at E-Trade and Schwab to help you determine which one might be most suitable for your investment needs. When it comes to size and reputation, E-Trade and Charles Schwab both play in the big leagues. In fact, each company holds more than $1 trillion in customer assets.


Schwab, also known as Charles Schwab, unites a range of financial services under one roof. Plus, Schwab clients can invest in actively and passively managed funds. In addition, investors can use a hi-tech robo-advisor tool to automate their investments.

  • It’s no easy task to profit from short-term trading on small market movements.
  • „Favorable” and „Critical” user reviews are selected using the review helpfulness score.
  • As of April 26th, 2023, margin rates for up to $24,999 clock in at 13.075% for Schwab customers.

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither Charles Schwab and Tradier offer crypto trading.

Does TD Ameritrade or Charles Schwab offer a wider range of investment options?

StreetSmart Edge is designed for efficiency, with simple navigation and customization that’s meant to match your trading style. The many advanced features include robust charting tools, the ability to trade multiple securities in the same order window (and with a variety of order types) and tools to monitor your market exposure. Both StreetSmart and Schwab.com provide access to research and robust tools catering to various types of traders. Basic trades can be placed on Schwab’s website, while the other platforms offer more sophisticated features. The truth is that trading platforms aren’t designed for investors like us, and we don’t exactly make full use of all their capabilities. The truth is thattrading platforms aren’t designed for investors like us, and we don’t exactly make full use of all their capabilities.

For research, Charles Schwab offers superior market research than TradeStation. When choosing self-directed trading, available account types include individual, joint, custodial, Traditional IRA, Roth IRA, Rollover IRA and Coverdell. Wealth Management clients can also open a beneficiary Roth IRA or beneficiary IRA. If opting for the Robo Portfolios, available account types include individual, joint, Traditional IRA, Roth IRA and Rollover IRA. Lastly, the company has to deal with the challenge of expense management and the impact of the economic cycle. While Schwab expects to reduce expenses through the integration process and operational streamlining, there are uncertainties related to ongoing expense actions.

Your account information is front and center with the expected portfolio data for each position, including price, cost, market value, gains, and losses. Traders can easily transition to the trading platforms, and those seeking basic buy and sell choices can select these options from the home screen dashboard. Integration between charles schwab vs etrade these two top-rated brokers is expected to conclude in 2024, with key features like the thinkorswim mobile and desktop platforms slated to be moved over to Charles Schwab. In the current review period, TD Ameritrade has continued to accept clients and a combined brokerage suite of features have yet to be announced.

Broker-Assisted Trades

This is almost the lowest valuation we have seen for Schwab over the last twelve months. As interest rates climbed and the expectations changed, it was apparent that the 2023 EPS would decline. However, the valuation fell significantly from a P/E ratio over 25 to 17.65, which I believe presents a decent entry point.

Charles Schwab vs. TradeKing: Top Online Brokerages – The Motley Fool – Charles Schwab

But you’ll have the option to tap into a Premium service for a monthly fee of $30, which includes unlimited guidance from a Certified Financial Planner (CFP). The Premium option also requires a $300 one-time planning fee. Ally Invest is the trading and investment service of Ally Financial. The company was founded in 1919 by General Motors (GM) as General Motors Acceptance Corporation (GMAC).

Trading platform

You can even chat with a trading specialist in real time through the app. After testing 25 features across the stock trading apps of TD Ameritrade and Charles Schwab, we found Charles Schwab to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. TD Ameritrade ranks #N/A out of 18 brokers, while Charles Schwab ranks #4. To compare the day trading platforms of TD Ameritrade and Charles Schwab, we focused on trading tools and functionality across both web and desktop-based platforms. Schwab Stock Slices offer access to fractional shares, so investors can buy a small slice of a stock rather than paying the full share price.

TD Ameritrade’s thinkorswim trading platform is superior to StreetSmart Edge with better charting and superb options analytical tools to change strategies, trade variables, and projection analytics. Thinkorswim will transition to Schwab in 2023, according to a Schwab representative. The desktop experiences are comparable, but active traders and investors would probably prefer TD Ameritrade’s thinkorswim platform with stronger charting and top-notch options trading analytics and tools. The desktop landing pages for Charles Schwab and TD Ameritrade have nearly the same menu items.

How do we review brokers?

The average execution quality of all brokers we review was 97.4% as of August 31, 2023. That means 97.4% of orders were executed at a price that was at or better than the National Best Bid and Offer. Executing at or above the NBBO means you may receive price improvement, or a better share price than you were originally quoted. Charles Schwab has a large selection of tradable securities, including mutual funds, ETFs, index funds, options, and futures.

Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

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